In a report released today, Stephen Grambling from Morgan Stanley maintained a Buy rating on DraftKings (DKNG – Research Report), with a price target of $49.00.
Stephen Grambling has given his Buy rating due to a combination of factors that reflect positively on DraftKings’ future prospects. The company reported stronger-than-expected financial results for the fourth quarter, with revenues and adjusted EBITDA surpassing consensus expectations. This performance alleviates concerns about the company’s structural hold issues and indicates a promising start to the year.
Furthermore, DraftKings’ management has shown confidence in the company’s future by committing to stock buybacks amid challenging conditions. The raised revenue guidance for fiscal year 2025 and the company’s focus on net gaming revenue per user, following significant user growth, are expected to drive further stock appreciation. With a favorable EV/EBITDA multiple and strong cash conversion potential, DraftKings is well-positioned for continued growth, which supports the Buy recommendation.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $54.00 price target.
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